CA Deepak Joshi (TaxTalk) (178 Points)
10 January 2010Sir,
Suppose I purchased some shares on 29 feb 08 and sold the same on 1 mar 09... what will the gains be classified as- STCG or LTCG? Kindly elaborate with reasons.
Thanx 
Amir
(Learner)
(4016 Points)
Replied 10 January 2010
Dear Deepak,
It will be classified as STGC, simply because law has used "YEAR" & NOT 365 Days...
Therefore in this case Year is completed on 28th Feb 2009, Remember to calculate Period Of Holding, Date of Sale is not considered...
Hence For Shares to become LTCg period of Holding should EXCEED 1 Year.
C.Balaji
(Learner)
(1867 Points)
Replied 13 January 2010
Mr.Amir
why it should not be treated as LTCA??? I'm confused.....please clarify.... with case laws or Income tax Act...
I thought date of sale should be taken for calculating the period of holding....
Regards
Balaji C
Amir
(Learner)
(4016 Points)
Replied 13 January 2010
Dear Balaji,
Sec 2(42A) defines Short Term Capital Asset which says that in case of shares they should not be held for maore than 12 months..
It is well settled principle that for calculating period of holding the date of transfer of asset is to be excluded, u can refer text books for that...
CA NEHA SHARMA
(CA)
(81 Points)
Replied 13 January 2010
can u tell me the indexation is optional in case of sale of shares, bt is it optional in case of sale of property or not
C.Balaji
(Learner)
(1867 Points)
Replied 13 January 2010
Dear Neha
If the shares or units are not sold through recognized stock exchange or if such sale has not suffered STT, then LTCG is taxed at 20% with indexation or 10% without indexation at the option of the assessee... STCG is taxed at normal rates.....
LTCG on sale of shares through recognised stock exchange and has suffered STT - exempt
why you don't want to avail the indexation benefit ?? it will bring down the Gain????
CA Radhika Arde
(Chartered Accountant)
(67 Points)
Replied 13 January 2010
Neha
Indexation benifit is with Long term assets and not short term...........
and as C.balaji said .. long term gain of shares on which STT paid are exempt..........
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 13 January 2010
Ya i don understand why you wanna make it optional..its disadvantageous for the assessee..
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 13 January 2010
| Originally posted by : NEHA | ||
 |
can u tell me the indexation is optional in case of sale of shares, bt is it optional in case of sale of property or not |  |
No neha! it is not optional in case of sale of property.
this option is available in case of sale of share or units only. in case of LTCG on other assets it is mandatory to index the cost.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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